the dow jones industrial average turned negative just after the federal reserve minutes from the most recent meeting were released. you can check out this chart, pretty steep drop just after 2:00 p.m. eastern trying to climb back but barely. a similar story with the s&p 500. flip it over to that, up for most of the day until 2:00 p.m. eastern when the fed and its to make a mac minutes were released. and at that meeting while they voted 9-1 to keep the bond purchases bi spigot open full blast, there was question questo what they were really talking about. look at why the market reacted the way it did. up 49 points. peter barnes has been going over the fed minutes with a fine tooth comb. lauren simonetti with the trader reaction.

and $40 billion in asset management. we will get to steve in a minute. but which specific line moved to market the most here? speak out it is this one, many members stress data dependent asset purchase program and some pointed out if economic conditions warranted, the committee could slow the pace of purchases at one of its next few meetings. and got into the weeds of the labor market, but the october 30 meeting was before we got the october jobs report which showed substantial upward revisions in the september jobs payroll jobs numbers, so perhaps the markets were little bit spooked maybe the data would be coming in a little stronger than they had before.

tapering may be on the table the next meeting in december, who knows. liz: there is the december meeting. whether the u.s. dollar. moving to these reaction. you had a front-row seat to the generations here. >> we saw them in stocks and the dollar index. 81.1, it did rise after those minutes were released. that is the highest since september 17 after fears of a possible paper. we are hitting those highs. three basis points away from its highest levels of the year. these are the trades we are seeing in addition to equities. liz: you read the fed minutes that jumped out to you. let's talk about it, does anything change your investment strategy? you have been bullish when it is

appropriate to be bullish. >> if there is a little bit of a pullback we would be buying and adding. within the market will grow substantially higher next year on accelerated economic activity. nothing that changes our view on that. emphasizing tapering is not the beginning of interest rate hikes, it is not even the end of easing. it is the beginning of the end of easing. that is the way to think about it. their focus on that 10-year period they will delay tapering again. they are very focused on keeping the 10-year low enough to keep the housing recovery in place and we think a real coloration housing will help the economy. liz: you were in essence watching the speech ben bernanke was giving and he was very clear exactly what talked about just because we might eventually

taper does not mean we are anywhere close to tightening rates at all. >> that is right. they are going to great lengths to separate out the quantitative easing tool from the fed funds short-term interest rates, so i think steve is exactly right. they want to make sure tapering is not tightening and they will continue to keep downward pressure. they will still buy what, $75 million for who knows how long. gradually take it down over time, but right now it looks like it will be a very slow progress. liz: a lot with the s&p 500. some names holding onto the green, but what were they saying about equities themselves? speak of the initial reaction is very small. we saw a couple minutes after the minutes were released, but

if you come into wall street and look at the board and see the major averages at historic levels you have to question is this real, is it something that is a real indicator of the healthy economy? most people would tell you know, they just don't know where to put their money. liz: steve kelly have some picks you would love to give to our viewers at a time when people are wondering about the housing market, you like home depot. some interesting news today, but at the point is that home depot and jpmorgan chase, these are names with questions swirling around them for separate reasons but why these two names right now? >> instead of crediting with the market is doing, sort of rotating. these are two names that have been held back.

we think it has another big breakout. that has been held back by regulatory concerns and legal concerns. their pre-much behind them now. the stock is trading one times price of the book. premier banking franchise in the united states. that is a kind of name people will be rotating into as a 20 figure out out ways to stay involved in this market. liz: it is awfully cheap. isn't a bank fascinating given the federal reserve policies as of late, the past couple of years, have been very helpful letting them park their money at the fed versus lending is more. any move by the fed to shake that system up. >> you're right. this is the excess reserves that

the bank keeps on comparing as they lie bonds from banks and wall street firms. right now the fed is paying them a quarter of a percentage point to keep their money part there. there was some discussion about whether or not they might change that policy, but they did not make any decisions on that. if they decided to change that policy, cut the rate, that can listen up a lot of money for more lending. liz: looking at sectors and how they have reacted. financial services, bank of america, berkshire hathaway, jpmorgan, they're all lower including morgan stanley as well. obviously it is not everybody getting hammered here. >> the banks were up earlier today, but now that you have down arrows.

liz: thanks to peter, steve and of course lauren simonetti. the guys elbow deep in trades right now. from the cme group, the new york stock exchange, in chicago we saw some interesting reaction with treasuries and the dollar, what is the chatter as to why the move was as dramatic as it was? >> there was one comment there could be tapering so far this year but the real reason is stocks have been exactly what they were on the central banks. basically a very rubbish chairman, a good testimony, so going forward there will be no tapering anytime soon. are they usin losing the abilit?

up 7 or 8 basis points on the fed minutes. if the fed doesn't do anything and interest rates stay under control, that is fine. if it starts pushing 3%, the question goes down to the fed lose control of the long end of the curve? liz: i have to say this really shouldn't change at the moment people's perspectives when it comes to investing. if the fed really doesn't appear to be tightening anytime soon. >> have known that from the get-go. the market has been up 2128 trading days. if you signs of stalling out the last couple of days and transports had been multi-day lows. down to the level that will be important. a lot of people are scared of

what has happened to interest rates approaching 4%, the highest level since september, but the fed has not even acted yet. the talk is causing the selloff and obviously yield could move down the transports, gold down under 1250 for the first time under october lows that is a little bit of concern for people watching. liz: truly believes in gold, this is the interest a picture. let's bring it to oil. switching over from the december to january 2014 contract. down just a penny. closer and closer to $92 per barrel. >> we had a very uneventful day here, december in november. it was very quiet, only few trades done.

saw gasoline and heating oil,, that was more or less a move in the print market. it was really strong today up a dollar. i think the product moved to new york versus what happened on the wti spread. liz: english, please. here is why. if gasoline continues to be relatively low, this is a good sign for consumers who are hopefully purchasing holiday gifts, so does that not make retail numbers more attractive, mike?jf >> i think it does. i think it will be good for retail sales going forward. if he has in gas prices at the pump recently, we have had the crash comin, the single digits t actually almost doubled. almost an $18 spot crack all based on the wti spread. in any event, retail sales in

this holiday season will come in good in the first tapering distilled down the road. everything gets overblown here sometimes, we had to take it one step at a time. liz: thank you so much for giving us nor on the floor perspective. in just a moment, did you see our herbalife taste test? well, today herbalife stock is moving higher after a couple of tweaks from charlie gasparino. set in the social media world ablaze. what he has learned about the latest on the stock. and don't count them out, chinese mobile securities firm was almost knocked out after damning allegations by research firm.

but bouncing back fighting back in the form of healthy earnings and a major new deal. in a fox business exclusive, co-ceo joining us to talk about this, to talk about how this company is moving forward.

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liz: the power mover of the hour, smuckers. not feeling too sweet today, shares stumbling some 7% at the moment down $7.80 after the company missed earnings expectations. they lowered their guidance for the year. a bounce back at the center of what may very well be the most violent attack in any company shared this year. formal security app company has spent the last three weeks fighting tooth and nail against research company muddy waters which is the company like fictitious customers and sales. we have been covering this as it

unfolded. this stock hit an all-time high of about $25.90. three days later on october 24, this is a lawyer who runs research firm muddy waters release a report: the company a fraud. the stock plummeted some 50%. in response they related the details of the customer accounts in question in all kinds of financial details and on november 12 nq mobile reported earnings that beat estimates. as you can see from the chart, it is up this year, but calling it a festive story for shareholders and company leaders in a fox business exclusive, choosing to speak just to our viewers. first of all, thank you very much for joining us. you had your analyst day a day after yesterday. >> we did. we anticipated our guidance for

next year, 60% growth on revenue on top line revenue. liz: they did not seem spooked. >> advertising up 20%, of the mac now 25 to 30% of the revenue stream so the results are what get people really fired up yesterday. liz: we have had him on the show to hear what he had to say about your company. in essence said he looked into her books, into your customers, they said people on the ground in china could not find these so-called customers, no addresses, he shorted the stock and it subsequently falls rather dramatically. lawsuits going either way. are you suing them for this?

>> we cannot comment of ongoing mitigation, but we follow the advice from a legal perspective. liz: why did he do that? >> we can't speak to what he did that. the reaction had to be swift and transparent action, which is what we did. liz: immediately called in the company that does your audits. they released all kinds of stuff. you have not recovered the fold drop, the full blood loss of what carson and muddy waters is able to do. what do you have to do to make sure that happens? >> we opened up completely from a transparency perspective. come do your due diligence. we have had multiple shareholders come to our offices, do their due diligence with our customers looking at the pub company, 13 filings over

the last couple of weeks. you have seen four of the top carriers in the world. china mobile has announced a deal for us to do family guarding this morning, parental controls product we have discussed before. china telecom will be reviewing the product we talked about. china unicom is doing the family guardian product in the first few days one of their top downloads over 130,000 downloads. liz: we were among the first networks to cover nq mobile a few years back. he appeared to have a viable business. you have all different kinds of platforms for mobile security which is so huge, a lot of profits from analyst for making

an effective transition to a huge mobile business. since your initial public offering in 2011 you have done extraordinarily well. is this part of doing business when you are in high tech land where there are so many changes on the landscape? >> shortselling or people looking into businesses, looking under the hood is part of business. you have to be able to in a highly competitive environment continue to innovate, continue to develop new product. we need to continue to launch new partnership, new products, recruit the best employees. that is how we succeed. liz: from the surface of the report it was such an attack in a way that looks like he has done some legitimate work, he is a lawyer. bring it on, any evidence we had revealed in court is something we would be happy to do. taught a very strong game and get we did our homework and looked at this.

they have done their due diligence, i would imagine. >> shareholders are on the ground in china talking to our partners. they visited our channel partners. liz: as we finish, qc report is a total fabrication and a lie? >> it is to execute the result and on the guidance of we provided. liz: nq mobile up today, going into a show about 7% for the the other numbers are pretty good. 131% year to date. it is a fascinating story, we will continue to follow. omar, thank you very much. the co-ceo of nq mobile. again, moving higher today.

the closing bell ringing in 37 minutes. herbalife, another one that has been attacked. some activist investor as well, seeing a pop today, 6.5% as charlie gasparino tweeted they may be working on a possible buyout of the company. who are these people? charlie is coming in. big money, fast money, smart money. he has the story exclusively next. plus the auto industry booming from having been down for the count. we take you live to the l.a. auto show to give you a perspective like nobody else can show you. except jeff flock. see how the automakers are revving up the industry. my mantra? family first.

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liz: a huge battle brewing with herbalife as investors looked to take it private jackman already had been

piled on now an a losing position. >> carl icahn and piled up against george soros or who knows who else? major investors are piled up and here is the sole focus -- the silver bullet. liz: he has said it is a ponzi scheme. >> this is what makes you a good journalist is that you killed me but he is a short seller is it is going down in zero it is up since he said that he said it is a pyramid scheme the company says it is not another smart people like george soros says it is not he lost dash did million but what would be the stake through the heart of the vampire not that he is but would kill

him is a leveraged buyout to take them public and i tell you all longtime investor serial investor at this point but he is a longtime smart investors just up the stake but we ask is a reported he is talking to investors about joining him with the leveraged buyout. what we heard although my calls have not been deaths some sources have said he is talking to the big sovereign wealth can't. liz: that is big money. >> key is plug did he not to have that. clearly he is looking, i can tell you that my sources he does want to buy the company. he loves it. but did he get the funding?

in the navy is one. why would they buy the company? people think it is cheap where it is. and despite the initial report people think it is $100 a pop but here is the interesting thing. i will be agnostic if it is a pyramid scheme i don't quite think it is but if you look at the earnings just from getting the distributors to sign up the notion is you don't have any real end-users you have distributors and they pay a fee and that goes to the company's bottom line because if you don't close it down you could have pretty good earnings even if you believe they have no end user the earnings will keep

growing. liz: this weird question? again we have to pass it on the freeway people with up bumper stickers asked me out except we ordered the sheikh's i liked them. news said they smelled weird marco like to inchon and did not but something. >> we needed a tiebreaker we should have got mr. many. [laughter] -- miss germany. [laughter] liz: i have nothing against her. she is lovely. don't cheat on me but herbalife probably never met the cl they are manipulating it. >> i don't see george soros but to idle the he himself

is involved but i am pretty sure that carl has a board seat and others have as well but i of the get command has ever met -- ever met in the cl1 dash ce0. liz: did he put out research? >> he will unveil it. >>. >> you need to go. >> all i don't want to go. >> but he says he has new information we exclusively reported he will have i witnessed testimony that herbal life is a bad thing. i don't know how much more but with all this stuff for

gatt if it is that pyramid scheme the government will not shut down a company that employs people. liz: they have spent around forever. if they go private with a 15% premium kiss his back and goodbye. liz: charlie gasparino. >> i am glad you are back mike milken he looked steph de blasio was in the game. >> rudy guiliani? does he like jim? have they patched that problem. liz: i did not realize there was a problem. what? that was along the ago but it is nothing now compared to jpmorgan? >> with a 2 billion. >> he gave back half of his net worth.

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liz: never a dull moment with the j.c. penney rollercoaster shares surging looking very good up 75% despite the reporting of a quarterly loss. let's look at this with lauren simoneti because there is optimism that changes every day. >> you can see the stock is up more than 7% although for the year it is the worst performer on the s&p 500 that tells the story right there. the relatively optimistic of holiday quarter is the reason why investors bid up this docket other retailers you can see macy's and kohl's but with a mixed

performance overall it will be interesting to see what the holidays numbers are when we get them because to see if it is a holiday season good for consumers now with a discount. liz: it feels there is pent-up desire to find these ben people think we may be in the clear? >> there is but reports that we've read on these issues show consumers are looking discounts of 40 or 50% if they cannot get a line upon black friday also thanksgiving thursday they want the deal. liz: tiffany's never goes on sale. the los angeles auto show kicks off featuring 50 cars in the industry including the chevy colorado

capable of telling loves you have to do that but is it in game changer? life from the audit show straight from north america. >> this is the truck for you have bigger ones than less big ones but that is the colorado to say this is the truck for the girl. [laughter] >> those who use it for other things stood duty cycle to all things. >> but it is smaller and it is a beautiful truck is different day and the silverado. >> let's lock around the track because they did a video. the ford ranger dropped out of the market, the dodge dakota on the video they had

that picture passing by the tacoma said they had to pass by a ranger but is this your way? >> the truck was seen in a beautiful environment it was a ranger raid array am. >> what are the markets. >> 200,000? >> you think it will get a lot bigger. >> moving to the regulatory environment is there is some segmentation we will be 1,000 pounds lighter which is already a lighter than that competition these are big operating cost savings with some power and torque. >> is a juror max that is the big truck then the silverado, right there.

ford does not have it, a chrysler does not have it. >> this silverado is one topic with the save engineering in thinking going into this but it will have a diesel engine an important point. >> are you worried? he says there is enough for everybody he's tried to get me to say something nasty but maybe they will take the bait. >> great company and a great competitor we are good friends with some good laughs.

liz: this is amazing talking smack in the bathroom. how many cupholders? >> it wasn't bad either. [laughter] liz: it did not happen like that. thank you very much. it is a great story. you want to hall things. >> closing bell in 15 minutes invest like a billion there it is easy when you talk with the next best we would love those returns from those activist investors are out there getting great money back. the money manager who will track like carl icahn and george soros and the fund that puts it up together it

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liz: so many are aspirational you watch fox business because you point to be a millionaire or billionaire someday but activist investors steal the show by putting there billions to work. carl icahn had dinner with apple ceo tim cook to take a position in third point founder pushed to be tapped as they often do chief executive but pension funds have been down by $7 billion

to activist funds so what do they know that we don't? our next guest does the hard work for you to tell you how to invest like a billionaire he has a fund to make it easy. we had to bring him back because so much has happened he has a thought -- a fund, the etf to mimic the moves of activist investors. how do you do that? >> we look at the public disclosures in with the managers over $100 million of other people's money has to file a form that the sec to disclose all positions at the end of the covert -- and of the quarter we built a system that scores for her to 50 managers chooses those that demonstrate a long period of time to put them in the etf. liz: who is your favorite? on this screen we had your strategy but they take some

bets so you don't absorb everything? >> no. we do a couple of things to choose managers may be a couple of managers to spread the risk then we choose the high a conviction position to invest those that they really believe been. they put their money where their mouth is. liz: i imagine the list comes through for those who are most successful? >> on is the i think carl icahn has done a great job over the last three years there are a lot of great investors out there and the thing about hedge fund is if you read the research.

>> buffet is not the hedge fund manager but they perform well and underperforms so the trick is to invest in multiple managers to mitigate that performance risk. >> year over year the fund is up 33% by kicking up dust of the vast and the difference between the hedge fund and the activist we can put them on the of this but 21st century fox is our company and the liberty global and dollar general? >> and also general motors. these are a hedge fund darling's stocks that has been in favor for a while now. where hedge funds continue to increase positions.

liz: looking at the activist darlings like fedex like carl icahn fannie mae or freddie mac what defines the ooh la la names? >> those include time warner and bite you has been a popular name but there has been a resurgence. >> quickly the us fizzle stocks what does that mean it? >> former darlings we see quite a bit of selling pressure and apple has gone from the darling to a

contrarian bet. liz: what we will do is play it every list up make sure you check it out thank deal. the closing bell rings and five minutes we will tell you what price line got quite a buzz -- the boost. stay tuned. ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪

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>> i love to blame the fed. blame the fed if things go right or wrong. lauren simonetti at new york stock exchange. you don't have to look further than gold if you want to blame the fed. gold really taking a hit today but it had a lot of action including a halt in trading. >> absolutely. gold prices settling at a four-month low an down continuing to move lower in electronic trading. look at them. some of them are down almost 4%. so the gold sector and gold mining stocks getting really hit hard today. liz: wow, but a halt for half an hour in gold trading because it fell so dramatically. lowe's shares sliding into the red reporting third quarter earnings we have before the bell that did not thrill investors, lauren. >> they raised their outlook for the year. it just wasn't enough to please wall street. one trader told me, lowe's and home depot. we like home depot, not lowe's.

david: jcpenney may have a future after all. [closing bell ringing] jcpenney was up about 7%. wells are ringing on wall street. jcpenney is happy of other people are but we say it has been worse than it was. dow is trading not at the session lows but it may settle there. dow jones is down about 65 points. again all of the really negative action happened after we got the minutes from the october meeting of the fed and the market didn't like what they saw there, liz. liz: let's get to the front page headlines which of course include all of that. despite the government shutdown people continue to shop. well before the fed minutes came out we got the retail sales numbers of for october. they showed a gain of .4 of a percent. that came higher than the .1 of a percent gain most economists were expecting. david: it is good if you shop. priceline.com got a boost after the company was added to the